Performance Management and Culture Change

I recently fielded a question regarding culture change and how to boost productivity and change culture with minimal fuss. "Minimum fuss" however this is not a realistic outcome when changing culture. Performance management will allow you to identify where you are going off course, boost productivity, and enhance competitiveness. And ultimately, the result will be a culture that is more independent, engaged, and innovative.

There are plenty of off-the-shelf solutions out there. Some are really lousy, but others can help you make an impact fast and are easy to implement. I recommend a few below to help you get started in this search. You can also do so in house by identifying desired outcomes, setting milestones (key performance indicators), and tracking progress to those milestones- all in an in-house database, even Excel. The key to this last path is (understanding and) setting aggressive bench marked outcomes with the buy-in of the various teams, then setting up a tracking system that is engaging and adhered to.

Bench marked data is out there. Dig for it in your industry. The managers in various departments should present the chosen data to their teams and get feedback on *how long* it will take to reach the new benchmarks. Don't get into a discussion about whether they can be reached but *when* they will be reached. Open discussions about what type of innovations will be needed to reach these new outcomes. Set your milestones from there. Then track and report progress on a regular basis, preferably weekly. Have discussion in these reporting sessions about what is going well, what resources may be needed, whether the milestones are still "good".

This will require some change on managements' role. What team's often identify as needed resources is more bodies. While this may be true, it is often not feasible. While the team develops innovations, the manager must demonstrate willingness for change by jumping into the mix and working on the "floor". This engages the manager in both relationships and emerging innovations.

Reward will be very important. When milestones are accomplished, rewards must be allocated. They should increase as the desired outcome is approached. In today's economy, cash bonuses will be the most appreciated. If you think your business can not afford to give cash bonuses, you need to go back and look at the identified desired outcomes. Everyone of those outcomes MUST impact the bottom line, hence making money for the company. Share this increased revenue, margin increase, or cost reduction with the employees. Its the BEST way to get your employees engaged with the success of the business. After all, everyone is managing some part of the business. If you don't do it, you'll just be seen as greedy. The effort will fail.

Some areas will be tougher than others but these provide great opportunities for cross-functional teams. Some departments, such as HR, will be tougher to identify with bottom-line outcomes, but I can help with this, if needed. If any department can not be tied to the bottom-line, you have to question why it exists.

I am skimming this topic pretty quickly (and you probably understand it already), but I am trying to hit the important points. The most important aspect of this course is that it encourages ACTION and involves everyone in this accomplishment. Don't get tied up in how people feel about change- do the best thing for the company! And involve everyone in the conversation. After all, if the company doesn't do well, all jobs may be in jeopardy.

Places to start your search for off-the-shelf solutions:
http://www.linkedin.com/redirect?url=http%3A%2F%2Fwww%2Epilotsoftware%2Ecom&urlhash=hbGO
http://www.linkedin.com/redirect?url=http%3A%2F%2Fwww%2Esuccessfactors%2Ecom&urlhash=t1yv
http://www.socialsolutions.com/

I also suggest these experts on this topic:
Kurt Bilafer
Matt Schubert
Deanna Tsang